Corporate governance code launched in Bahrain

The Central Bank of Bahrain (CBB) has urged the nation's financial institutions to support a new corporate governance code unveiled by the government.

Speaking at the launch of the guidelines in Manama, CBB governor Rasheed Al Maraj said high standards of governance are "especially important" for organisations in the financial sector.

He claimed that banking executives enjoy "a special position of trust" and must therefore ensure their firms operate with transparency and effective risk management strategies.

Mr Maraj described the code, which reflects the Organisation for Economic Cooperation and Development's governance guidelines, as a "significant development in strengthening Bahrain's reputation as a well-regulated financial centre".

Calling on all public companies to "enter fully into the spirit of the new code", he also said improved corporate governance will have a long-term impact on Bahrain's economy by making the country more attractive to foreign investors.

Sultan Sooud Al Qassemi, a non-resident fellow of the Dubai School of Government, wrote in the National last month that Persian Gulf states will see their governance standards placed under greater scrutiny over the next few years.